Written evidence from Chequered Flag Training (RHS0003)
I run an LGV (HGV) / PCV driver training company.
We are not regarded as an “educational establishment” and are therefore not exempt from VAT.
1)
A candidate for an HGV licence does NOT pay VAT on the Theory elements of obtaining their licence (this being Government supplied through Pearsons).
However, when they come to us, as a private sector business, we are obliged to charge VAT on our services for Practical tuition.
This increases the basic price of a training course from c£1,000 to c£1,200 by the addition of c£200 in VAT charges.
A simple “suspension” of VAT on HGV driving tuition would reduce the capital required by individual candidates by 1/6th . (Zero Rate HGV Tuition)
This may make the acquisition of an HGV licence more attainable for younger people.
This “suspension” would only have a benefit to individuals as companies already recoup VAT.
The idea is to stimulate the individual market and not the corporate market.
By making it clear that the “suspension” was time limited would encourage younger people to save and spend quickly providing additional HGV drivers into the economy.
2)
Our vehicles are registered with the DVLA in the Tax Category 10 (Private Heavy Goods Vehicle).
We draw fuel by means of Fuel Cards (in our case BP).
We cannot obtain discounts on fuel as the quantities we draw are below any minimum level required by fuel companies.
To reduce our charges to prospective candidates, a rebate scheme based upon training companies presenting Fuel Card Statements along with their claim. Vehicles can be cross checked with DVLA records to ensure the fuel used is for training purposes.
A less desirable option is for training vehicles to use Red Diesel.
Fuel rebate can also be applied to additives (AdBlue).
3)
The introduction of the Driver CPC coincided with an age reduction (from 21 to 18) for the acquisition of an HGV licence.
Presumably the idea was to engage younger drivers into the industry.
The reality is that the idea failed to work as the insurance companies apply premiums which are prohibitive towards new HGV drivers.
Whilst multi-national corporates may absorb these premiums, the middle to small operator cannot.
Government has a “duty” to communicate with the insurance sector to resolve this issue.
One young driver we trained (who was 18) was quoted a premium of c£10k pa to drive his father’s vehicle.
4)
Greater education for the 14-16 year old sector in schools is imperative.
With salaries of £30k –c£35k for HGV drivers now being available, a long time career with reasonable working conditions is available.
But unless young people (who will not become academics) are made aware of this as a livelihood, they will struggle into careers for which they may not be suited.
There is an option to having a Degree and years of future debt to look forward to!
Can I confirm this? Yes, I can. My daughter did not take her university place. She has an HGV licence, runs a car, has a pet dog, a property on a part buy/part rent basis and a positive BLACK bank balance – but no Degree in some obscure subject she cannot get a job in.
5)
Limit the quantity of in-house HGV training performed by multi-national companies.
Companies are now permitted to have their own delegated Examiners. I have no problem with that (we are going to need them all soon).
But allowing these companies to enter the “private sector” and train more drivers than they will require will damage the private sector.
Already, long established HGV training companies are losing so many customers (to Brokers and company operated in-house training schemes) that their prices are increasing just to try and stay in business.
The country will still require a backbone of private sector HGV trainers. Not everyone will want to train with a supermarket giant.
6)
Engage with the private HGV training providers.
Whilst the RHA and FTA speak for the “end-users”, those who need drivers, who will speak for the training providers, those who will be needed to train this new generation?
Some years ago the DSA (now the DVSA) worked with six private sector training providers on the (then) new Trainer Booking portal. I was fortunate to be one of “the six”.
The input from the training companies enabled the DSA to provide us with a portal and procedures that we could work with. Whilst never being perfect, when it was introduced nationwide, it met with little complaint.
If the Government is going to “solve” the imminent HGV driver shortage it must talk to the training providers.
Ian R Fairweather
FCMI FIOEE MCIEA MInstTA
Managing Director